Establishing Investigation & Disciplinary Systems – A Guide for PAOs

Published date: January 12, 2018

The Confederation of Asian and Pacific Accountants (CAPA) is excited to announce the completion of a third publication under the Maturity Model Guidance Series, the Investigation & Discipline Guide. The Maturity Model Guidance Series is a series of publications to support the Maturity Model for the Development of Professional Accountancy Organisations publication which provides a roadmap for organisational growth based on the measurement and improvement of practices and processes. It comprises sixteen key success areas (KSAs) across four broad characteristics of sustainability, relevance, professionalism and member value. “Investigation and discipline” is one of the KSAs included under professionalism.

A credible accounting profession, built on integrity and quality, requires a strong system of investigation and discipline (I&D) in order to appropriately administer consequences to members of the profession who do not behave in an ethical and professional manner. A trusted I&D system is a necessary feature for any professional accountancy organisation (PAO) in order to encourage and maintain a strong accountancy profession. Leading and respected PAOs understand that a robust and transparent I&D system is essential, as it demonstrates a commitment to ensuring the highest levels of professionalism among their members.

This Guide provides the “why”, “what” and “how” for the design and implementation of an I&D system. It explains why a strong commitment to I&D is important; highlights the key components of a robust I&D system that complies with international requirements for good practice; and provides some tools, templates and examples to assist with implementation. For an overview of the Maturity Model and the I&D Guide, read this flyer.

Although primarily aimed at PAOs without established and mature I&D systems, the Guide also includes a section on consideration for advanced systems to provide aspirational content, recognising that any I&D system will involve ongoing challenges and complexities. CAPA President, Manoj Fadnis, expressed his appreciation to the International Federation of Accountants for endorsing and recommending this guide. “We hope PAOs around the world that are developing their I&D system will find the publication beneficial and easy to use as it focuses on practical guidance to achieve the minimum requirements for a working system, as well as highlights the necessary key components to establish and maintain a strong I&D system,” Manoj commented.

“In addition, we would like to acknowledge the contributions from CAPA member organisations and our PAO Development Committee in providing valuable feedback during the preparation of this guide,” CAPA Chief Executive, Brian Blood, noted in expressing gratitude. “We would also recommend this guide to PAOs that are establishing their quality assurance for audit functions, as both guides work in tandem to ensure members of PAOs perform their duties with the highest level of professionalism,” he added.

To access an electronic copy of the I&D Guide, go to: PAO Development > Maturity Model Guidance Series > Investigation & Discipline